A further 420 MG Rover workers are to lose their jobs after hopes of restarting engine production ended, administrators announced today.

PricewaterhouseCoopers (PwC) said 363 workers at the Powertrain engine plant in Longbridge, Birmingham, will be made redundant.

Another 58 jobs at the MG Rover Group and MG Sport and Racing will also be axed.

The administrators held a meeting with suppliers earlier this week and outlined a plan aimed at maintaining engine production for up to four months.

Most suppliers agreed to the plan, but a "significant" number were unable to agree terms.

Steven Pearson, one of the joint administrators, said: "Over the last three weeks we have had considerable support from customers, employees, unions, government and the majority of suppliers.

"It is extremely disappointing that despite everyone's best efforts, a viable solution for all parties to see production restarted could not be achieved."

Rob Hunt, another joint administrator, added: "In the absence of an agreed plan which would have secured supplies and funding we have no alternative other than to cease production and make these redundancies.

"Despite the announcement of redundancies today our efforts to find a buyer for Powertrain are continuing."